FAC Explorer

Audit 28417

FY End
2022-11-30
Total Expended
$1.98M
Findings
2
Programs
2
Organization: Sebastopol Area Housing Corporation (CA)
Year: 2022 Accepted: 2023-04-10
Auditor: Allan Liu CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
37955 2022-001 Significant Deficiency - A
614397 2022-001 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $1.43M Yes 1
14.195 Section 8 Housing Assistance Payments Program $544,421 Yes 0

Contacts

Name Title Type
FRZTQ5JK2HV7 Susanne Wilson Auditee
4153454400 Allan Liu Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTES TO SCHEDULE OF FEDERAL AWARDS NOTE A: BASIS OF PRESENTATIONThe accompanying schedule of expenditures of Federal awards includes the Federal award activity of Burbank Orchards, Inc., under programs of the federal government for the year ended November 30, 2022 in accordance with the requirements of Title 2 U.S. code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal awards (Uniform Guidance). Because the schedule presents only selected portion of the operations of Burbank Orchards, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Burbank Orchards, Inc.NOTE B: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the schedule are on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited to reimbursements. Burbank Orchards, Inc. has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance.NOTE C: FEDERAL LOAN PROGRAMSThe federal loan programs listed subsequently are administered directly by Burbank Orchards, Inc. and balances and transactions relating to the programs are included in Burbank Orchards, Inc. basic financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding as of November 30, 2022 consists of:CFDA Number Program Name Outstanding balance at November 30, 2022 14.157 Section 202 Direct Loan Program for Housing For Elderly or Handicapped $1,433,196 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 1433196.

Finding Details

Finding 2022-001
CONTROL DEFICIENCIES- NON-MATERIAL WEAKNESSES SIGNIFICANT DEFICIENCIES 2022-001 Authorized replacement reserve. Condition: Burbank Orchards, Inc. did not submit the Funds Authorization form HUD-9250 and all the required information and receive signed approval, prior to releasing amounts from the replacement reserve bank account. Criteria: Burbank Orchards, Inc. is required to submit the Funds Authorization form HUD-9250 and all the required information and receive signed approval, prior to releasing amounts from the replacement reserve bank account. Cause: Burbank Orchards? property management did not follow the required actions to properly complete and submit the Funds Authorization HUD form-9250 and receive signed approval as required. Effect: Because of the of the releasing of amounts from the replacement reserve prior to receiving signed approval on the Funds Authorization form HUD-9250, the U.S. Department of Housing and Urban Development may take action corrective action against Burbank Orchard, Inc. Recommendations: Burbank Orchards, Inc. must take steps to ensure that they submit the Funds Authorization form HUD-9250 and all the required information and receive signed approval, prior to releasing amounts from the replacement reserve bank account. Views of the responsible officials and planned corrective actions: We concur with the above finding and this finding has been reviewed and studied for the purpose of ensuring this does not take place in the future. Additional controls/procedures will be in place to ensure this does not happen in the future are as follows: ? All requests will be prepared by the Community manager and submitted to accounting for copies of invoices, checks, etc. ? Once all supporting documents are obtained, the HUD form 9250 will be prepared, and reviewed by Assistant Director and submitted to HUD for approval along with all documentation. ? A tracking sheet will be used to track the submission and the approval, with appropriate follow up. ? Once approval from HUD is received the entire packet will be submitted for review by ownership/Board, along with the HUD approval. The board will provide written approval of the transfer. ? Only after the Board has reviewed and provided written approval, will funds be transferred from the Replacement Reserve account over to the operating account.
Finding 2022-001
CONTROL DEFICIENCIES- NON-MATERIAL WEAKNESSES SIGNIFICANT DEFICIENCIES 2022-001 Authorized replacement reserve. Condition: Burbank Orchards, Inc. did not submit the Funds Authorization form HUD-9250 and all the required information and receive signed approval, prior to releasing amounts from the replacement reserve bank account. Criteria: Burbank Orchards, Inc. is required to submit the Funds Authorization form HUD-9250 and all the required information and receive signed approval, prior to releasing amounts from the replacement reserve bank account. Cause: Burbank Orchards? property management did not follow the required actions to properly complete and submit the Funds Authorization HUD form-9250 and receive signed approval as required. Effect: Because of the of the releasing of amounts from the replacement reserve prior to receiving signed approval on the Funds Authorization form HUD-9250, the U.S. Department of Housing and Urban Development may take action corrective action against Burbank Orchard, Inc. Recommendations: Burbank Orchards, Inc. must take steps to ensure that they submit the Funds Authorization form HUD-9250 and all the required information and receive signed approval, prior to releasing amounts from the replacement reserve bank account. Views of the responsible officials and planned corrective actions: We concur with the above finding and this finding has been reviewed and studied for the purpose of ensuring this does not take place in the future. Additional controls/procedures will be in place to ensure this does not happen in the future are as follows: ? All requests will be prepared by the Community manager and submitted to accounting for copies of invoices, checks, etc. ? Once all supporting documents are obtained, the HUD form 9250 will be prepared, and reviewed by Assistant Director and submitted to HUD for approval along with all documentation. ? A tracking sheet will be used to track the submission and the approval, with appropriate follow up. ? Once approval from HUD is received the entire packet will be submitted for review by ownership/Board, along with the HUD approval. The board will provide written approval of the transfer. ? Only after the Board has reviewed and provided written approval, will funds be transferred from the Replacement Reserve account over to the operating account.